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Dáil
‹ An tOrd Gnó - Order of Business

High accommodation costs

Summary

Deputy Pearse Doherty raised soaring accommodation costs for families, including those needing hospital stays in Dublin. The Government agreed businesses and the tourism sector must offer value for money and said the Ministers involved would respond in detail.

Families are in the grip of a cost-of-living crisis. Those who were planning to holiday in Ireland this summer are being asked to think again as they are faced with sky-high accommodation costs. It is much worse for families from down the country, including in my constituency and elsewhere, who need to travel to Dublin for a hospital appointment - perhaps a child's appointment - and who cannot find accommodation or, at least, accommodation they can afford. In April, hotel and other accommodation prices increased by 8%. In the past year, they have gone up by 20%. We see hotels in Dublin charging eye-watering levels that people simply cannot afford.

The hotel sector, understandably, received billions of taxpayers' money during the pandemic and it is enjoying an extension of the 9% VAT rate, which will cost the State and taxpayers €900 million. Have the Taoiseach, the Tánaiste and the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media engaged with the sector and with the Irish Hotels Federation to discuss the prices that are being charged? Have they outlined the expectation that the reduction in VAT that will be extended is to be passed on to customers and is not to benefit the pockets or profits of the industry?

Comment on this

I agree it is important that businesses are mindful of the need for Ireland to maintain its position as a destination that gives value for money. I acknowledge the Deputy's concerns that the tourism sector maintains its competitive edge.

The Deputy is correct in saying that we have extended the VAT reduction and a whole other range of supports, especially supports around Covid. I will ask the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media, Deputy Catherine Martin, and the Tánaiste to revert to the Deputy on the specific details of their engagements with the sector. It is important that Ireland does not lose its competitive edge and that we ensure that businesses provide value for money for domestic tourists but also for those who are arriving on our shores.

Comment on this